Air Products and Chemicals Inc. (NYSE:APD) shares traded higher Thursday after the industrial gases company reported fiscal third-quarter 2026 results, as an earnings beat and raised outlook offset a revenue miss.
Adjusted EPS of $3.47 beat the $3.34 estimate, while sales of $3.161 billion missed the $3.202 billion estimate. Revenue rose 4.6% year over year on higher volumes, pricing, and favorable currency.
• Air Products stock is showing upward movement. What’s pushing APD stock higher?
Earnings and One-Time Charges
GAAP loss per share was $6.47, compared with earnings of $3.24 a year earlier. Adjusted EPS rose 12%, while adjusted operating income increased 9% to $810.3 million.
Adjusted operating margin expanded 110 basis points to 25.6%.
GAAP operating loss totaled $2.10 billion, reflecting $2.91 billion in pre-tax project-exit charges.
The charges equaled $2.21 billion after tax, or $9.92 per share, and were tied to the Louisiana Clean Energy Complex, the Casa Grande green hydrogen facility and smaller clean-energy projects.
Regional Performance
Americas sales increased 5% to $1.32 billion, with operating income up 6% to $395.4 million and margin at 29.9%.
Asia sales rose 9% to $886 million, while operating income climbed 18% to $256.4 million and margin expanded to 28.9%.
Europe sales grew 6% to $815.7 million. Operating income rose 2% to $230.7 million, though margin declined 90 basis points to 28.3%.
Middle East and India equity-affiliate income increased 18% to $101.1 million.
Backlog and Cash Flow
Air Products reported a $3 billion traditional industrial-gas backlog, including $2.4 billion of electronics projects.
Air Products San Fu will build and operate four air-separation units and related infrastructure for a semiconductor manufacturer’s expansion in Taiwan.
Nine-month operating cash flow was $3.31 billion, while capital expenditures totaled $2.65 billion.
Cash stood at $980.5 million. Long-term debt was $16.59 billion, plus a $769.5 million current portion.
Guidance Raised
The company raised full-year adjusted EPS guidance to $13.39-$13.49 from $13.00-$13.25, compared with the $13.16 estimate.
Fourth-quarter adjusted EPS is expected at $3.55-$3.65 versus the $3.51 estimate, while fiscal 2026 capital spending is projected at about $3.5 billion.
APD Stock Price Activity: Air Products shares were up 1.49% at $298.79 at the time of publication on Thursday, according to Benzinga Pro data.
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